Which of the following formula is correct to calculate provision on debtors to be transferred to Profit and Loss Account?
1
Bad Debts + New Provision - Old Provision
2
Provision on Debtors + New Provision + Bad Debts - Further Bad Debts
3
Bad Debts + New Bad Debts + New Provision - Old Provision
4
New Provision on Debtors + Old Provision made for Bad Debts